Channel Five reports £37m loss after tough 2009

Thursday 11 March 2010 10:54 BST

Channel Five, home of Neighbours and CSI, today slumped to an annual loss of 41 million (£37.4 million) as Britain's third terrestrial commercial broadcaster saw its share of TV advertising squeezed more than some rivals' in 2009.

Revenues dived 21.1% to £269 million from £341 million a year earlier, when Five lost less than £2 million.

Gerhard Zeiler, chief executive of Luxembourg-based parent company RTL, insisted Five had performed creditably in "the most challenging advertising market in Europe in 2009". "The UK market has been a tough place for every player, not only Five."

RTL admitted that Five, including digital channels Five USA and Fiver, saw its share of TV advertising fall to 8.4%, from 9.6% in 2008. But adult viewing share rose slightly and dramas such as FlashForward and The Mentalist won record ratings.

Zeiler reiterated his view that a merger between Five and another British broadcaster was likely as part of wider consolidation. RTL has lobbied for a tie-up with Channel 4. "To take part in that consolidation process, which I am sure it will, Five is a valuable asset," said Zeiler, dismissing suggestions that shareholders would want him to sell.

Five made an operating loss of £9.1 million, before a writedown of £20 million on acquired American programmes and restructuring costs of £8.2 million. RTL wrote off a further £127.6 million in the value of Five, which was first announced last August.

RTL also runs X Factor and Britain's Got Talent production firm Fremantle and channels across Europe. Profits at Fremantle, which sells shows to 57 countries, were flat at £142 million.